$16.4M in tax refunds blocked

State comptroller's office tabs questionable refunds in 5,903 returns

Updated 8:07 am, Tuesday, April 17, 2012

New York State Comptroller Thomas P. DiNapoli answers questions during a Times Union editorial board meeting, Monday March 12, 2012 at the Times Union in Colonie N.Y. (Will Waldron / Times Union)

New York State Comptroller Thomas P. DiNapoli answers questions during a Times Union editorial board meeting, Monday March 12, 2012 at the Times Union in Colonie N.Y. (Will Waldron / Times Union)

Photo: WW

$16.4M in tax refunds blocked

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ALBANY — No refund for you!

State Comptroller Tom DiNapoli has blocked $16.4 million in questionable New York personal income tax refunds from 5,903 improper filings so far this year.

The good news for blameless taxpayers: DiNapoli's office audited and approved 4.7 million refund requests totaling $4.1 billion in 2012, his office reported Monday. Another 406,000 refund requests totaling $382 million are expected to be paid in the coming days.

The blocked amount is up considerably from almost the same point in 2011: On April 18 of last year, $13.3 million in improper state income tax refunds had been put on ice. On April 14, 2010, the office reported slightly less than $12 million in blocked refunds.

"While most taxpayers play by the rules, these unscrupulous filers claimed children they don't have, listed fictitious day care expenses or used other schemes to cheat their fellow New Yorkers," DiNapoli said in a statement. "Through my office's efforts, we will ensure that only legitimate refunds are paid."

The majority of questionable returns were filed by taxpayers who claimed credits for ineligible child care or credits allowed only for low-income households. Almost a quarter were linked to dishonest tax preparers filing false tax returns.

More Information

Here are the major reasons for a blocked state income tax refund:

Cause Number of filers Amount

Claiming ineligible refundable credits 3,397 $8,768,821

Claiming ineligible refundable credits 1,362 $2,975,724

Questionable Social Security numbers 626 $1,732,882

Incorrect wages and withholding 101 $992,418

Questionable itemized deductions 103 $617,916

Failed to claim correct New York City income 108 $256,163

Failed to claim correct state income 23 $210,961

Other reasons 183 $804,246

Total refunds stopped 5,903 $16,359,131

Source: Comptroller's office

DiNapoli's office audits all state bills prior to payment, including income tax refunds.